Iran Oil Exports Rising But Challenges Abound

Iran’s oil exports are already rebounding after an interim deal with the West, but Iran won’t flood markets, the International Energy Agency said Wednesday. In its monthly oil market report, the IEA said Iran’s oil exports rose by 89,000 barrels a day in November to 850,000 barrels a day, as the Chinese bought more and oil shipments to Taiwan resumed. By contrast, Iran’s crude exports had reached their lowest level in 21 months in October.

While capping Iranian crude oil exports to 1 million barrels, the nuclear pact allows the resumption of insurance on Iranian oil voyages – thus removing what had been a key impediment to Tehran’s crude exports. Nevertheless, the agency said restrictions on Iranian sales to Asia and a blanket EU oil embargo “remain fully in place [which] leaves on the face of it no room for any sustained increase in exports.” (Wall Street Journal)